893.51 Manchuria/49

The Secretary of State to the Chargé in France (Marriner)

No. 106

Sir: The Department refers to its instruction No. 63 of August 4, 1933, enclosing a copy of an Associated Press article25 from Tokyo relating to the formation of the Tokyo Franco-Japanese Association to make investments in the new state of “Manchukuo”, and to the Embassy’s despatch No. 185, dated August 21, 1933, reporting on a conversation on this subject which the Commercial Attaché of the Embassy had on August 19th with Mr. Etienne Fougère, President of the Association Nationale pour l’Expansion Economique.

There is enclosed a copy of a telegram to the Department from the American Minister at Peiping, dated September 13, 8 a.m.,26 quoting a Reuter despatch sent on September 12th from Changchun, Manchuria, to the effect that the head of the Economic Mission sent to Manchuria by the Association Nationale pour l’Expansion Economique and “Manchukuo” authorities have reached an understanding for the investment of French capital in “Manchukuo”. The report states that the head of the Economic Mission is proceeding to Dairen, where he will meet the Vice President of the South Manchuria Railway Company to enter into definite conversations regarding the form of French investments, and that upon the return of the head of the Economic Mission to Paris the Association is expected to send experts to “Manchukuo” to investigate automobile and electric industries in which French capital will probably be invested.

You are requested to obtain all the information available with regard to the identity and standing of the group of French manufacturers which is reported to have sent the Economic Mission to Manchuria, and to ascertain whether or not there is any basis in fact for the statements set forth in the Reuter despatch under reference. The importance of following any developments along the lines indicated therein cannot be too strongly emphasized.

In the event that you are able to find a substantial measure of truth in the report under reference, the Department desires you informally and orally to inquire at the Foreign Office with regard to the attitude of the French Government towards projected investments of French capital in “Manchukuo”.

Very truly yours,

For the Secretary of State:
William Phillips
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